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Gold Jun '17 (GCM17)

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Gold Futures Market News and Commentary

Dollar Pressured by Weakness in US Economic News

The dollar index (DXY00) slid to a 1-week low today and is down -0.05%.  The dollar is under pressure today after T-note yields fell on the weaker-than-expected US economic reports on the Q4 employment cost index and Dec retail sales. The weaker reports bolstered expectations that the Fed will resume easing monetary policy this year, a bearish factor for the dollar.  Strength in the Chinese yuan also undercut the dollar after the yuan rose to a 2.5-year high against the dollar today.

The US Q4 employment cost index rose +0.7% q/q, weaker than expectations of +0.8% q/q and the smallest increase in 4.5 years.

US Dec retail sales were unchanged m/m, weaker than expectations of +0.4% m/m.  Dec retail sales ex-autos were also unchanged m/m, weaker than expectations of +0.4% m/m.

The dollar sank to a 4-year low late last month when President Trump said he's comfortable with the recent weakness in the dollar.  Also, the dollar remains under pressure as foreign investors p... Read more

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